OTTAWA COUNTY, Mich. — Multiple sources confirm to FOX 17 that Ottawa County will pay $4 million to Health Officer Adeline Hambley. In exchange, she’ll drop her lawsuit against the county and step down as health officer.
Added conditions include Deputy Health Administrator Marcia Mansaray stepping down in the near future with a severance package.
According to a source, this could be the largest payout in Ottawa County's history. FOX 17 was told in the last 30 years, the county hasn't paid a combined $2 million in litigation claims. The last known balance reserved to fight litigation claims was around $30 million.
Previous lawsuits were paid out by the Ottawa County Insurance Authority. According to Ottawa County's website, the OCIA "assumes financial and operational responsibility for all matters relating to risk retention, risk management and insurance coverage (except employee benefits) for the county, including its departments and agencies and the Ottawa County Building Authority."
Over the next few days, attorneys will reportedly work to finalize a deal to be signed by both parties. The parties plan to meet again at the next board meeting on Tuesday, November 14.
Before this settlement was reached, a source says Hambley’s initial offer was to keep her job. In exchange, the county would cover her attorney fees. A source says her fees were higher but offered at a discontinued rate of around $80,000.
This negotiating follows a two-day removal hearing after four charges were leveled against Hambley. She was accused of incompetence, misconduct and neglect of duty during the county’s budgeting process.
Commissioners were expected to vote Monday on her termination but instead went into a closed session for eight hours.
When the board returned, they voted 7-3 with Chairperson and Ottawa Impact Founder Joe Moss motioning "to accept counsel's recommendation regarding litigation and settlement activities in the case of Hambley v. Ottawa County as addressed during closed session." His fellow Ottawa Impact commissioners and Commissioner Rebekah Curran favored the motion. Commissioner Kyle Terpstra had left before the vote. Commissioners Doug Zylstra, Jacob Bonnema and Roger Bergman voted against the motion.
READ MORE: Ottawa County Board gives initial approval on legal settlement with health officer
It’s still not clear how commissioners shifted from removal efforts to reaching a settlement.
Chairperson Joe Moss - Yes
Vice-Chairperson Sylvia Rhodea - Yes
Gretchen Cosby - Yes
Roger Belknap - Yes
Allison Miedema - Yes
Lucy Ebel - Yes
Rebekah Curran - Yes
Doug Zylstra - No
Roger Bergman - No
Jacob Bonnema - No
Kyle Terpstra - Didn’t Vote
Commissioner Jacob Bonnema gave FOX 17 the following statement Wednesday:
“Today Ottawa County residents are learning they got a raw deal. The decision by Ottawa Impact to payout Adeline Hambley goes against every principle of good governance and fiscal conservatism.
“First, it is a severe abuse of the taxpayers, who are now compelled to pay this exorbitant settlement to one person and get absolutely nothing in return.
“Second, Ottawa County taxpayers now have to pay Mrs Hambley as well as the salary of the full-time director who replaces her. Double pay for half the work is the pattern of behavior for staffing decisions by Ottawa Impact commissioners.
“Finally, the speed at which this decision was made and the Ottawa Impact commissioner’s willingness to go along with this, with no checks or balances, is wholly irresponsible and begs the question, “why?”
“The opportunity costs of this decision will have lasting effects, because $4 million is a lot of money! Consider what could have been done with $4 million to help our neighbors. How many roads could we have plowed? How many park paths or benches could we maintain or improve? How many sheriff cruisers could we buy or deputies could we employ to keep us safe?
“Ottawa County needs better government. Joe Moss, Sylvia Rhodea and the Ottawa Impact commissioners promised to ‘value the People of Ottawa County above the interests of government,’ but this settlement is another failed promise.
“We need people who will govern with the least force, use good sense and courage in decision making, honor all people equally, and reject ideology that segregates. Ottawa Impact’s actions show they care about themselves alone and will do everything in their power to protect their interests over those of the taxpayers.”
HOW DID WE GET HERE?
In February of 2023, Hambley initially sued Ottawa County after the board abruptly demoted her to interim health officer. On Jan. 3, one month earlier, the new commissioners had nominated Nathaniel Kelly as their choice for health officer.
Due to this legal case, the Kallman Legal Group billed the Ottawa County Insurance Authority $82,686 from February to August of this year. FOX 17 has FOIA’d the August-through-October billing from Corporate Council.
In October, the Kallman Legal Group fought and lost in the Michigan Appeals Court with the ruling that Hambley was the rightful Ottawa County health officer. The court did favor the attorney group, stating that the board of commission "retains the authority to terminate Hambley if the commission complies with the procedures and standards prescribed in MCL 46.11(n)."
Moss alone scheduled a removal hearing for Oct. 19 but Commissioner Zylstra pointed out that the board needs a majority vote to set a hearing date. A week later, the hearing started with ten witnesses called by Hambley's attorney, Sarah Howard. The witnesses included current and former employees.
Howard presented several exhibits to showcase Hambly’s actions and statements as she proceeded through the county budget process. Larger proposed cuts to Public Health were requested by county officials. Hambley then spoke to the media, warning that if these cuts were approved, it would shutter the health department in weeks. She later explained she was left out of the continuing budget discussions. Not long after those remarks, county officials walked back on their demands and added more money to Public Health.
We will be at Tuesday’s board meeting and bring you further updates.
This is a developing story. Stay with FOX 17 as we work to learn more.
